News blog

Sunkar Resources

• BY: Andrew Hore |
• POSTED: 17/06/2014 |

Majority shareholder Sun Avenue Partners Corp is bidding 1.835p a share for the minority shareholding in Sunkar Resources. 

The bid values the phosphate supplier at £6.26m. Sun Avenue also owns $1.28m of convertible loan notes. Sunkar raised £33.6m at 120p a share when it joined Aim in June 2008. Sun Avenue first invested at the end of 2007 but it sold its stake in 2010. The company lent money to Sunkar in 2012 and last year these loans were converted into a majority shareholding.

Even after raising additional cash, Sunkar did not have enough cash to develop the Chilisai phosphate deposit and manufacturing facility. Cash is in short supply and Sunkar is dependent on its majority shareholder for support. Aun Avenue believes it will be easier to raise finance if Sunkar is not quoted.

The bidder is owned by Kazakhstan businessman Almas Mynbayev.

The share price has fallen 0.27p to 1.75p.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2014_57.pdf